Which One of the Following Will Decrease the Net Working

question 336

Multiple Choice

Which one of the following will decrease the net working capital of a firm? Assume that the current ratio is greater than 1.0.

• A) Selling inventory at a profit.
• B) Collecting an accounts receivable.
• C) Paying a payment on a long-term debt.
• D) Selling a fixed asset for book value.
• E) Paying an accounts payable.

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Definitions:

Knowledge Contract

An agreement or understanding, often informal, that dictates the sharing, use, and creation of knowledge within an organization, shaping its culture and knowledge management practices.

Licensing

Involves one company granting its permission to another company in a foreign country to manufacture or market its products in its local market.

Royalty Payments

Financial payments made to copyright or patent holders, or to the authors of works based on the sales or usage of their creations.

International Business Strategy

A plan that guides commercial transactions between entities in different countries, including market entry, marketing, and operational strategies.